Panama president rules out debate over canal, eyes expanding U.S. migration deal

Adds details on migration, direct deportations from Darien Gap

PANAMA CITY, Feb 2 (Reuters) - Panama's President Jose Raul Mulino stressed that sovereignty over his nation's namesake canal is not up for debate, after talks with U.S. Secretary of State Marco Rubio on Sunday, but he outlined the possibility of repatriating more migrants.

The canal has emerged as a flashpoint between the two nations, as U.S. President Donald Trump has repeatedly insisted that the United States must retake the waterway key to global trade due to his claims of undue Chinese influence.

In remarks to reporters, Mulino suggested a possible expansion of an existing agreement with the United States from last July that could pave the way for direct deportations of non-Panamanian migrants who cross the Darien Gap jungle on Panama's southern border with Colombia. He insisted, however, that the U.S. government would need to cover the cost.

Over the past few years, the area has seen a surge of U.S.-bound migrants.

The Panamanian leader noted that such an expanded deal could potentially allow for the deportation of migrants from Venezuela, Colombia and Ecuador.

"We spoke extensively about the problem of migration, with the understanding that Panama is a transit point," said Mulino, after his meeting with Rubio.

Mulino's talks with Rubio, Trump's top diplomatic envoy, mark a first stop for Rubio on a tour of several Central American nations as well as the Dominican Republic over the next few days.